Claims Made Policies

Business interruption insurance is intended to protect the potential earnings of the insured business. In general, business insurance is offered in two forms, either a claims made policy or an occurrence policy. Prior to purchasing business insurance, it is important for the business owner to understand each type of policy in order to determine what will be the best fit. Many business owners choose to meet with an insurance professional to discuss current options and create a plan for the future.

No one can prepare for a disaster to strike. Therefore, business owners are encouraged to purchase insurance to protect their business location. While standard property insurance will not cover the costs of loss of income if the disaster were to temporarily close the business, the purchase of business interruption insurance will cover the this particular loss. Unfortunately, many business owners fail to recognize the value of this coverage. However, when disaster strikes those who are concerned with the income that is produced while their business is being repaired will certainly have this coverage.

Arguello, Hope & Associates has years of experience in dealing with insurance companies across the nation. Our business insurance lawyers all share a deep legal knowledge, vast experience in handling insurance claims, and a compassion for those who have suffered in a disaster. If you or a loved one is seeking guidance for your business insurance claim, our claims made policies attorneys are ready to help you today.

For more information, please complete a Free Case Evaluation form on this page.

Claims Made Policies

As the name indicates, claims made policies refer to coverage which is initiated on the date that the insured was first made aware of the potential of a claim and gave notice to the insurer of this knowledge. As such, the insurance policy in force on said date will be the one to respond to the claim. The time period covered works in a retroactive manner, meaning that the policy coverage for claims made today will come from events or actions that were made in the policy period or extended reporting period (ERP). Many people refer to the ERP as “a tail”, which extends the claims reporting period after it has ended.

The two different claims made forms are as follows:

  • Claims-Made & Reported Form: this is the most popular form used today and requires that the claim must be made in the ERP or policy period and reported within this same period of the current policy in force.
  • Pure Claims-Made Form: while this form still requires that the claimant makes the claim during the ERP or policy period, there is a much looser requirement for reporting. These forms state that the insured must only report the claim promptly or as soon as feasible. This means that the reporting may be done outside of the policy term.

The differences between these two forms is slight, however, it is essential for all insured parties to understand the variance between one another. In addition, it is important to understand that each insurance company may maintain a slight difference in answers. As a result, all claimants are encouraged to speak with a professional insurance claims attorney to ensure that they are handling each step of the process correctly.

The two largest concerns with claims made policies typically lie in the extended reporting period and the retroactive date. Understanding the complexities of this process is often outside of the scope of a typical claimant. It is common for these people to hire outside help to guide them throughout the process and make sure that they receive the compensation that they deserve.

An Experienced Insurance Claims Attorney is Here for You

Arguello, Hope & Associates has dedicated years to helping when disaster strikes. No one can predict the level of damage that a disaster may cause. The only safety net that business owners have is in the insurance that they have purchase. While there are many types of insurance policies, the concept is always the same: you pay a premium, so if something terrible happens you will be covered. Sadly, many insurance companies fail to live up to their end of the bargain.

Combining years of experience with a comprehensive knowledge of insurance claims made policies, the insurance claims lawyers of Arguello, Hope & Associates know what it takes to successfully achieve the compensation that their clients deserve. If you or a loved one has run into issues with your business insurance claim, our insurance claims lawyers are here for you.

Fill out a Free Case Evaluation form at your earliest convenience to learn more.